false--12-31Q220142014-06-3010-Q00011622833359055Smaller Reporting CompanyMORGAN GROUP HOLDING CO2352941958577236857723685772368220187295145320555219288293919319002<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><div> <div><!--StartFragment--> <p style="text-align: justify"><font style="font-family: Times New Roman; font-size: 80%">Note 1.</font> <u style="font-family: Times New Roman; font-size: 80%">Basis of Presentation</u></p> <p style="font-family: Times New Roman; font-size: 80%; PADDING-LEFT: 32pt; text-align: justify"> Morgan Group Holding Co. ("Holding" or "the Company") was incorporated in November 2001 as a wholly-owned subsidiary of LICT Corporation ("LICT") to serve, among other business purposes, as a holding company for LICT&#39;s controlling interest in The Morgan Group, Inc. ("Morgan"). On January 24, 2002, LICT spun off 2,820,051 shares of Holding common stock through a pro rata distribution ("Spin-Off") to its stockholders and retained 235,294 shares.</p> <p style="font-family: Times New Roman; font-size: 80%; PADDING-LEFT: 32pt; text-align: justify"> The accompanying unaudited condensed financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and with the instructions to Form 10-Q and Article 8 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three and six months ended June 30, 2014 are not necessarily indicative of the results that may be expected for the year ending December 31, 2014. The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from these estimates.</p> <!--EndFragment--></div> </div>2112208981312164355518202239-433541.001000000200000<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><div> <div><!--StartFragment--> <p style="text-align: justify"><font style="font-family: Times New Roman; font-size: 80%">Note 4.</font> <u style="font-family: Times New Roman; font-size: 80%">Commitments and Contingencies</u></p> <p style="font-family: Times New Roman; font-size: 80%; PADDING-LEFT: 32pt; text-align: justify"> From time to time the Company may be subject to certain asserted and unasserted claims. It is the Company&#39;s belief that the resolution of these matters will not have a material adverse effect on its financial position.</p> <p style="font-family: Times New Roman; font-size: 80%; PADDING-LEFT: 32pt; text-align: justify"> The Company has not guaranteed any of the obligations of Morgan and believes it currently has no commitment or obligation to fund any creditors.</p> <!--EndFragment--></div> </div>0.010.010.01100000001000000010000000100000000335905533590553359055335913359133591187725327327-0.02-0.01-0.010.0074415265813837712050-74958-26581-38357-12042<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><div> <div><!--StartFragment--> <p style="text-align: justify"><font style="font-family: Times New Roman; font-size: 80%">Note 3.</font> <u style="font-family: Times New Roman; font-size: 80%">Income Taxes</u></p> <p style="font-family: Times New Roman; font-size: 80%; PADDING-LEFT: 32pt; text-align: justify"> The Company is a "C" corporation for Federal tax purposes, and has provided for deferred income taxes for temporary differences between the financial statement and tax bases of its assets and liabilities. The Company has recorded a full valuation allowance against its deferred tax asset of approximately $187,725 arising from its temporary basis differences and tax loss carryforward, as its realization is dependent upon the generation of future taxable income during the period when such losses would be deductible.</p> <p style="font-family: Times New Roman; font-size: 80%; PADDING-LEFT: 32pt; text-align: justify"> Pursuant to Sections 382 and 383 of the Internal Revenue Code, annual use of any of the Company&#39;s net operating loss carry forwards may be limited if cumulative changes in ownership of more than 50% occur during any three year period.</p> <!--EndFragment--></div> </div>-14417-101390720819582201872951453205551958275857-4781423810000275314-73075-53354-74958-26581-38357-12042-74958-54373075533740.010.010.01100000010000001000000000806890816838201000010000200027531489912261553-5585772-5510814-54873628000000.1533590553359055<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><div> <div><!--StartFragment--> <p style="text-align: justify"><font style="font-family: Times New Roman; font-size: 80%">Note 2.</font> <u style="font-family: Times New Roman; font-size: 80%">Significant Accounting Policies</u></p> <p style="font-family: Times New Roman; font-size: 80%; PADDING-LEFT: 32pt; text-align: justify"> All highly liquid investments with maturity of three months or less when purchased are considered to be cash equivalents. The carrying value of a cash equivalent approximates its fair value based on its nature.</p> <p style="font-family: Times New Roman; font-size: 80%; PADDING-LEFT: 32pt; text-align: justify"> At June 30, 2014, December 31, 2013 and June 30, 2013 all cash and cash equivalents were invested in a United States Treasury money market fund, of which an affiliate of the Company serves as the investment manager.</p> <p style="font-family: Times New Roman; font-size: 80%; PADDING-LEFT: 32pt; text-align: justify"> The Company may from time to time invest in marketable securities that are bought and held principally for the purpose of selling them in the near term and are classified as trading securities. Trading securities are recorded at fair value on the balance sheet in current assets, with the change in fair value during the period included in earnings.</p> <p style="font-family: Times New Roman; font-size: 80%; PADDING-LEFT: 32pt; text-align: justify"> Basic earnings per share is based on the weighted-average number of common shares outstanding during each period. Diluted earnings per share is based on basic shares plus the incremental shares that would be issued upon the assumed exercise of in-the-money stock options and unvested restricted stock using the treasury stock method and, if dilutive.</p> <!--EndFragment--></div> </div>220187295145318597-5585772-5510814335913359157723685772368<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><div> <div><!--StartFragment--> <p style="text-align: justify"><font style="font-family: Times New Roman; font-size: 80%">Note 5.</font> <u style="font-family: Times New Roman; font-size: 80%">Shareholders&#39; Equity and Stock Options and Warrants</u></p> <p style="font-family: Times New Roman; font-size: 80%; PADDING-LEFT: 32pt; text-align: justify"> At the Company&#39;s Annual Meeting of Stockholders on May 8, 2014, its stockholders voted to amend the Company&#39;s Certificate of Incorporation (the "Charter Amendment") to increase the number of authorized shares of common stock, par value $0.01 per share, from 10,000,000 to 100,000,000. The Company has not yet filed the Amended Certificate of with its state of incorporation, Delaware, to effectuate the authorization.</p> <p style="font-family: Times New Roman; font-size: 80%; PADDING-LEFT: 32pt; text-align: justify"> On December 21, 2012, the Company and Jonathan P. Evans, currently Chief Executive Officer of the Company, entered into a Nonqualified Stock Option Agreement, whereby the Company granted to Mr. Evans an option (the "Option") to purchase 800,000 shares of the Company&#39;s Common Stock at an exercise price of $0.15 per share of Common Stock, which is the closing price of the Common Stock as quoted on the OTC Markets&#39; inter-dealer quotation service on December 20, 2012. The Options are exercisable at any time and the exercise period expires December 21, 2015. As of June 30, 2014, these are the only options outstanding.</p> <p style="font-family: Times New Roman; font-size: 80%; PADDING-LEFT: 32pt; text-align: justify"> Also on December 21, 2012, the Company issued a warrant to purchase up to 1,000,000 shares of the Company&#39;s Common Stock at $1.00 per share to Jonathan P. Evans in exchange for $10,000, which was received in 2013. In addition, on that date the Company issued a warrant to purchase up to 200,000 shares of the Company&#39;s Common Stock to Robert E. Dolan, Chief Financial Officer of the Company, in exchange for $2,000. Both warrants are exercisable currently through December 21, 2017. As of June 30, 2014, these are the only warrants outstanding.</p> <!--EndFragment--></div> </div>28200513359055335905533590553359055xbrli:sharesiso4217:USDiso4217:USDxbrli:shares00011622832014-04-012014-06-300001162283us-gaap:AdditionalPaidInCapitalMember2014-01-012014-06-300001162283us-gaap:RetainedEarningsMember2014-01-012014-06-300001162283us-gaap:CommonStockMember2014-01-012014-06-3000011622832014-01-012014-06-3000011622832013-04-012013-06-3000011622832013-01-012013-06-300001162283us-gaap:ChiefExecutiveOfficerMember2012-11-212012-12-210001162283us-gaap:ChiefFinancialOfficerMember2012-11-212012-12-2100011622832001-12-242002-01-2400011622832014-07-300001162283us-gaap:AdditionalPaidInCapitalMember2014-06-300001162283us-gaap:RetainedEarningsMember2014-06-300001162283us-gaap:CommonStockMember2014-06-3000011622832014-06-300001162283mghl:NotYetAuthorizedMember2014-05-080001162283us-gaap:AdditionalPaidInCapitalMember2013-12-310001162283us-gaap:RetainedEarningsMember2013-12-310001162283us-gaap:CommonStockMember2013-12-3100011622832013-12-3100011622832013-06-3000011622832012-12-310001162283us-gaap:ChiefExecutiveOfficerMember2012-12-210001162283us-gaap:ChiefFinancialOfficerMember2012-12-21